How do I correctly account for our sales and communicate with our customers under the following sample scenario of a representative transaction for our business?
a customer books a taxable service (say, at a $1,000 cost) and accepts that we will charge her a $200 taxable non-refundable deposit at the time of booking. The booking form includes the customer's credit card informaton.
when we receive the booking, we use the credit card information to manually charge the taxable $200 deposit. At this point, we would like to (a) post the $200 as a liability and the $X in tax as a tax liability (not the default tax payable account because we wouldn't owe these taxes at this point, we're just holding them), and (b) send the customer a quote that shows the $1,000 (+ tax) cost, minus the $200 (+tax) deposit, equals $800 (+tax) outstanding. But we can't have the accounting system post the $800 (+tax) remainder as revenue/negative account receivable because we have not performed the service yet.
10 days before we perform the service, we charge the $800 (+tax) final payment to the customer. This needs to be posted as a liability (unearned income/revenue), not as revenue/income, because we haven't performed the service yet. We would also like to send the customer an updated estimate showing the $1,000 (+tax) cost, minus the $200 (+tax) deposit, minus the $800 (+tax) final payment, equals $0 outstanding.
Then, on the day we perform the service, the $200 deposit and the $800 final payment should be moved from the liability accounts to the revenue/income account and the tax on those payment should be moved to tax payable.
I haven't found an easy way to accomplish this, particularly because we can't create an invoice until the day we perform the service (to prevent QB from posting sales/revenues and accounts payable before then). Does anyone have any thoughts on this?
Thanks in advance.
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